SECURITIES AND EXCHANGE COMMISSION

On June 2, the Honorable Denny Chin, U.S. District Judge, Southern District of New York, ordered the entry of permanent injunctions, by consent, against Global Financial Traders, Ltd. (Global), BGSG Holding Corp.(BGSG), Michael R. Reilly (Reilly), and John J. Kenna (Kenna). Defendants Global, BGSG, Reilly, and Kenna were enjoined from future violations of the antifraud provisions of the federal securities laws. In addition, Reilly and Kenna were enjoined from future violations of the market manipulation provisions of the securities laws. The court waived disgorgement and determined not to impose civil penalties on Global and BGSG based on their demonstrated inability to pay. Reilly was ordered to pay $200,000 in disgorgement. The court waived disgorgement for Kenna, and determined not to impose civil penalties on Reilly and Kenna based on their demonstrated inability to pay. Litigation is pending against two other defendants, Vincent J. Iovine (Iovine) and David S. Coleman (Coleman).

The Commissionís complaint, filed March 13, 1997, alleged that Global, BGSG, Reilly, and Kenna had realized over $5.8 million in net profits from trades in the stock of American Image Motor Company, a security traded on the OTC Bulletin Board. The complaint alleged that Reilly and Kenna had engaged in a scheme in which they had (1) obtained a large undisclosed position in the stock of American Image; (2) used a concerted telemarketing campaign by personnel at Global, which is controlled by Reilly and Kenna, and recommendations in a newsletter published by Global to promote the stock, making material misrepresentations concerning the market for American Image stock and failing to disclose Reilly and Kennaís interest in the security; (3) sold large amounts of American Image stock from accounts which they controlled; and (4) maintained the market price for American Image stock through purchases of the stock and by directing a trader at a registered broker-dealer to raise or lower quotations on American Image stock. The complaint further alleged that Iovine and Coleman, both traders at registered broker-dealers, had bid for and purchased American Image stock in order to maintain the market for the security within a desired trading range. It was alleged that by this conduct defendants Reilly and Kenna violated Section 10(b) of the Securities Exchange Act of 1934 and Regulation M, and that Global and BGSG violated Section 10(b)of the Securities Exchange Act of 1934.